a. What are the prospects for a PE that overleverages due to cheap funding sources? b. What
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Question:
a. What are the prospects for a PE that overleverages due to cheap funding sources?
b. What are the pros and cons of becoming a public company?
c. Suppose that Lululemon raises $2 million in series A financing for 5 million shares and 25 percent of the company and keeps 75 percent ownership. Another round of financing, series B, funds another $3 million for 3 million shares. Calculate the percentage ownership of series A investors if they do not participate in series B financing, and they have the following anti-dilution provision in their contract:
- Full-ratchet anti-dilution
- Weighed average anti-dilution
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324664553
Concise 6th Edition
Authors: Eugene F. Brigham, Joel F. Houston
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